Business Index Down, Midwest Remains Strong

Business Index Down, Midwest Remains Strong

Article excerpt

OMAHA, Neb. (AP) -- Difficulty finding qualified workers and a
slowdown in export orders dropped a business conditions index in
July, but the Midwest economy remained strong, an economics professor
said.

"One of the recurring themes of the 1997 economy in mid-America is
the shortage of qualified workers," Creighton University economics
professor Ernie Goss said Friday. "In fact, we have reports in some
states of firms hoarding workers, that is, not trimming their work
force when business slows, because they are afraid they will not be
able to hire when business picks up.

"This labor shortage," he said, "which is a symptom of a very
strong economy, is made worse by a lack of in-migration to the region
and threatens to further constrain growth in the months ahead."

The relative strength of the dollar compared with other currencies
slowed export orders for the region, Goss said.